Dealerships keeping busy with government trade-in program

WOOSTER " A government program aimed at getting older, high emissions-producing vehicles off the road has been well received by the public, despite the fact it's only been up and running for two days.

The Car Allowance Rebate System, better known as Cash for Clunkers, offers up to $4,500 toward the purchase of a new vehicle in exchange for trade-ins no older than 25 years of age, and is a big reason why dealerships are moving an unusually high number of cars given the current conditions.

"We've had a very good response," said Mike Pallotta, owner of Pallotta Ford-Lincoln-Mercury on Cleveland Road in Wooster. "We had people who, prior to the official announcement, put down partial payments on vehicles so they wouldn't be sold once the program started. It gives folks the chance to upgrade their second or third vehicle or for companies to do some upgrading as well."

According to a news release on the Web site www.cars.gov, CARS is a $1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy, boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation's roadways.

Customers can receive a $3,500 discount if the vehicle they're upgrading to gets five miles per gallon of gasoline more than their trade in, or $4,500 if their new vehicle gets 10 or more miles to the gallon better than their trade.

"It's a good program," said Kirk Spurgeon of Spurgeon Chevrolet on Old Lincoln Way West in Wooster. "In most cases, people wouldn't get anywhere near $4,500 for their trade. This isn't just about gas mileage or energy consumption, it's about the atmosphere and the carcinogens that today's cars produce versus what older cars produced."

Spurgeon said cars turned in will never see the highway again. Dealers pour a solution into the engine block designed to cease movement, rendering the engine useless.

From there, the bodies of the vehicle are sold for scrap.

However, the program and its popularity could present two potential problems for dealers.

For one, the program is scheduled to sunset either Nov. 1 or when the $1 billion allocated for it dries up. In addition, with many manufacturing plants closed down, inventory, or a lack thereof, might mean slim pickings for buyers.

"Traffic has definitely been up the last couple days," said Nick Soranno, general manager of Park Mazda of Wooster, 4404 Cleveland Road. "People need to realize that if they drag their feet, they may risk losing the opportunity to get government money for this."

Nearly every dealership in Wayne and Holmes counties is participating, including Wooster's College Hills Honda, Rittman's Laria Chevrolet-Buick and Orrville's Serpentini Chevrolet and Maibach Ford, and all reported heavy customer activity.

"It's a zoo," said Brett Bell, co-owner of Village Motors, 784 Wooster Road, Millersburg. "It's as chaotic as it can be."

Larry Wood, general manager of Underwood Motors, 2626 Cleveland Road, said, "It's unbelievable, really. I guess I'm not too surprised because the whole last month was pretty quiet, so we hoped it would be this way. We were pretty well prepared."

Bill Cross, owner of Performance Auto Group on Old Lincoln Way West, said business is up, but admitted he's slightly nervous about what happens when the $1 billion runs out.

"How will we know when they run out of money?" Cross said. "If you did a deal on a car and the dealer submits the paperwork (for reimbursement from the government), what happens? No one I've talked to can really answer that. I'd recommend customers do it now if they're thinking about it. The first thing that will happen is the program will run out of money or dealers are going to run out of cars."

Reporter Bryan Schaaf can be reached at 330-287-1645 or bschaaf@the-daily-record.com.